BarCap sees 5bn boost to revenues

BARCLAYS Capital, the investment banking arm of Britain&rsquo;s Barclays, should deliver returns on equity of 15 to 20 per cent despite expected regulatory changes, it said yesterday. <br /><br />Barclays also expects to boost annual revenues by over &pound;5bn as it builds out its investment banking business in equities, mergers and acquisitions advisory and prime services, said BarCap President Jerry Del Missier.<br /><br />BarCap chief executive Bob Diamond said he was confident he can meet the returns target over the cycle despite regulators requiring the bank to hold more capital, reduce leverage and hold more liquid assets, all of which are likely to reduce returns.<br /><br />Del Missier said: &ldquo;We believe Barclays Capital can continue to generate returns of 15 to 20 per cent over the cycle.&rdquo;<br /><br />BarCap said it expects to get incremental revenue of over &pound;3bn in equities, over &pound;1bn from direct M&amp;A business, and over &pound;1bn from prime services. The pair were speaking via a webcast of an investor day held in New York.